Government Spending and Exchange Rate Fluctuation Nexus in Nigeria.

Abstract

The study evaluated the effect spending and Exchange Rate Oscillation Nexus among government in Nigeria. It studied capital expenditure, recurrent expenditure and deficit budgeting, money supply and trade openness of the government on exchange rate fluctuations in Nigeria. The study was anchored on the mundell-fleming model. The study employed a several regression model and data collected were analyzed by means of descriptive statistics. The results confirm that capital expenditure has no significant effect on Exchange Rate in Nigeria. Recurrent expenditure has no significant effect on Exchange Rate in Nigeria. Deficit budgeting has no significant effect on Exchange Rate in Nigeria. Money supply does not have any significant effect on Exchange Rate in Nigeria. Trade Openness does not have significant effect on Exchange Rate in Nigeria. It was  recommended that to boost Nigeria Exchange Rate, there is basic need for proper re-evaluation of Government fiscal policies before adoption, credible supervision, monitoring and prudent spending to achieve the desired results among others.